Enact Holdings, Inc. · NASDAQ:ACT
Enact — Investor Presentation (January 2021)
58 slides from Enact's investor presentation, January 2021
Slide 1: Understanding Loan Product Advisor - Advanced Guidelines and Updates
Understanding Loan Product Advisor® - Advanced Guidelines and Updates January 2021 Customer Education Brought to you by: Genworth Customer Development and Process Consulting
Slide 2: Freddie Mac Updates - Where To Get Them
Freddie Mac Updates - Where To Get Them Freddie Mac’s Website – Link to www.freddiemac.com – Link to Client Resource Center https://my.sf.freddiemac.com/ – Subscription Center – Learning Center – http://www.freddiemac.com/loanadvisorsuite/ – Single Family News – Pending Loan Product Advisor® Enhance
Slide 3: www.freddiemac.com
www.freddiemac.com https://sf.freddiemac.com/about/single-family/subscription-center Advanced Loan Product Advisor 2
Slide 4: Freddie Mac's Client Resource Center
Freddie Mac’s Client Resource Center https://my.sf.freddiemac.com/https://my.sf.freddiemac.com/ Advanced Loan Product Advisor 3
Slide 5: Sightline Magazine
Sightline Magazine https://sf.freddiemac.com/resources/sightline- magazine?utm_source=eloqua&utm_medium=email&utm_campaign=2020-12- 28_AFFORDABLE_Other&utm_content=IMG Advanced Loan Product Advisor 4
Slide 6: Bulletin 2020-5… 2020-47
Bulletin 2020-5… 2020-47 Guidance Related to Covid-19 https://guide.freddiemac.com/app/guide/content/a_id/1003723 https://guide.freddiemac.com/app/guide/bulletin/2020-47 Advanced Loan Product Advisor 5
Slide 7: Freddie Mac COVID-19 resources
https://sf.freddiemac.com/content/_assets/r esources/pdf/faq/covid-19-selling-related- https://sf.freddiemac.com/about/covid19 frequently-asked-questions.pdf Advanced Loan Product Advisor 6
Slide 8: Genworth Training
Genworth Training https://new.mi.genworth.com/training/course/freddie-mac-covid-19-updates#watchnow Advanced Loan Product Advisor 7
Slide 9: Loan Product Advisor Documentation Matrix
Loan Product Advisor Documentation Matrix Tool to help document files https://sf.freddiemac.com/content/_assets/resources/pdf/update/docmatrix.pdf Advanced Loan Product Advisor 8
Slide 10: Freddie Mac Rental Income Matrix
Freddie Mac Rental Income Matrix Tool to help document files https://sf.freddiemac.com/content/_assets/resour ces/pdf/update/rental.pdf Advanced Loan Product Advisor 9
Slide 11: The Loan Product Advisor You've Asked For
https://sf.freddiemac.com/tools-learning/loan-advisor/our-solutions/the-loan-product-advisor-youve-asked-for Advanced Loan Product Advisor 10
Slide 12: Enhanced LPA Feedback Certificate tutorial
http://www.freddiemac.com/learn/lo/tutorials/enhanced-lpa-feedback- cert/content/index.html#/lessons/g-ZrZ_83fQmJynV2VzTOtIJQR_TMas1C Advanced Loan Product Advisor 11
Slide 13: Freddie Mac Learning
Freddie Mac Learning https://learn.freddiemaclearning.com/Saba/Web_spf/NA 3P1PRD0123/guest/ledetail/cours000000000009322 Advanced Loan Product Advisor 12
Slide 14: Validate Mortgage Information
Validate Mortgage Information Advanced Loan Product Advisor 13
Slide 15: Feedback Certificate
Feedback Certificate http://www.freddiemac.com/help/lpa_tool/feedback_certificate_page.html Advanced Loan Product Advisor 14
Slide 16: Capacity: Self-Employed Income
Capacity: Self-Employed Income Freddie Mac Income Calculations – Updated Form 91 Income Calculations Form • Genworth posted updated Form 91 at mi.genworth.com – Revised documentation requirements • Two years tax returns for businesses in existence less than five years • One year tax return for busin
Slide 17: Documenting Employment and Income
Documenting Employment and Income Break Out Income Type For Proper AUS Results Advanced Loan Product Advisor 16
Slide 18: Income/Employment Messages
Income/Employment Messages • Documentation “Level” determines the documentation required – Note: Many messages say “if”, so they apply only “if”…. See temporary COVID 19 guidelines for age of documents Advanced Loan Product Advisor 17
Slide 19: Income
Income Advanced Loan Product Advisor 18
Slide 20: Assets
Assets Do not enter gift funds in Section 2. Gifts are entered in Section 4. Advanced Loan Product Advisor
Slide 21: Assets
Assets Observation Section Lists Total Assets Entered By Type; Underwriting Analysis Report Lists Total Funds Required, Including Any Reserves Assets Entered By Type Total Funds Required Additional Reserves May Need To Be Verified If Paying Down Accounts, Paying Off Collections Or Judgments Or Tax L
Slide 22: Minimum Borrower Contribution
Minimum Borrower Contribution Borrower’s Own Funds Freddie Mac Seller Servicer Guide (Chapter 5501.3(b)(i)) – No requirement for >80% LTV loans where: – Primary residence and – Gift or gift of equity received from eligible donor used as source of funds or – Employer Assisted Homeownership (EAH) Bene
Slide 23: Assets
Assets Standard Depository Messages: – Number of months documentation Best Practices: – Do you have All of the pages? –Truncated account numbers allowed as long as the last four digits are displayed Advanced Loan Product Advisor 22
Slide 24: Assets
Assets See temporary guidelines Mutual Funds and Other Non-liquid Account Types: – Proof of liquidation Proof Of Liquidation – When used for the down payment or closing costs, if the value of the asset is at least 20% more than the amount of funds needed for the down payment and closing cost
Slide 25: Assets
Assets See temporary guidelines Retirement accounts (401k or IRA) – Accounts that allow for withdrawals only in connection with the borrower’s employment termination, retirement, or death, or the account does not allow for any type of withdrawal should not be entered Look For Indications That the Ac
Slide 26: Assets
Assets LPA uses the number of financed properties to apply the following eligibility guidelines for casefiles when the borrower has multiple financed properties and the subject property is an investment or second home.: – A minimum credit score of 720 is required for borrowers with 7-10 financed pro
Slide 27: Freddie Mac Required Reserves
Freddie Mac Required Reserves http://www.freddiemac.com/learn/pdfs/uw/reserves.pdf Advanced Loan Product Advisor 26
Slide 28: Freddie Mac Required Reserves
Freddie Mac Required Reserves http://www.freddiemac.com/learn/pdfs/uw/reserves.pdf Advanced Loan Product Advisor 27
Slide 29: Assets
Assets ✓ Are all the assets per LPA verified plus any additional that are needed to payoff a judgment or collection? ✓ Evidence of liquidation if needed? ✓ Additional reserves? ✓ Loan Product Advisor does not validate if the maximum seller paid fees have been exceeded. You must validate this based o
Slide 30: Credit and Liabilities
Credit and Liabilities • Check for overlay of minimum credit score • Check for overlay of minimum number of credit scores • Check for overlay of minimum number of tradelines used in credit score Advanced Loan Product Advisor 29
Slide 31: Credit and Liabilities
Credit and Liabilities Borrowers with Credit Freeze https://guide.freddiemac.com/app/guide/content/a_id/1000641 Advanced Loan Product Advisor 30
Slide 32: Credit and Liabilities
Credit and Liabilities If consumers ask for a freeze online or by phone, the credit reporting agency must have the freeze in place within one business day. And when consumers want to lift the freeze, the credit reporting agencies have to make that happen within one hour. (If consumers make the r
Slide 33: Credit and Liabilities
Credit and Liabilities Disputed Information – Loan Product Advisor will provide “Invalid” recommendation if impactful Collections are not required to be paid off by Freddie Mac, but may be a requirement of the lender. Tax Liens and judgments must be paid and funds must be verified, in addition to th
Slide 34: Liabilities
Liabilities ✓ To exclude a liability that someone else pays requires documentation for 12 months showing timely payment and to exclude a mortgage, they must be a co- signer ✓ When excluding a mortgage payment that someone else has been verified making the payments, it is the PITIA that can be exclud
Slide 35: Liabilities
Liabilities Revolving: Indicate both the balance and monthly payment on all revolving accounts. Do not “omit” the debt even when 10 or fewer payments remain. These payments should always be included in the applicant’s debt ratio. 30-Day Charge: Monthly payments on open-end accounts are not required
Slide 36: Liabilities
Liabilities Leases: Indicate both the balance and monthly payment on all leases. Do not “omit” the debt even when 10 or fewer payments remain. Lease payments should always be included in the applicant’s debt ratio. Advanced Loan Product Advisor 35
Slide 37: Other Liabilities
Other Liabilities Child Support: Indicate both the balance and monthly payment on all support accounts. If less than 10 payments remain, the payment should not be included in the applicant’s debt ratio. Alimony: Must be deducted from the monthly income. Advanced Loan Product Advisor 36
Slide 38: Liabilities
Liabilities Student Loans: Indicate both the balance and monthly payment on all student loans. – All student loans in repayment, forbearance or deferment • If the payment amount is greater than zero, use the payment reported on the credit report or other documentation, or • If the monthly payment am
Slide 39: Liabilities
Liabilities Effective for Mortgages with Settlement Dates on and after January 2, 2020 Currently, Sellers may exclude a Borrower’s monthly student loan payment from the DTI ratio if: – The monthly payment may be excluded from the DTI provided the documentation in the file indicates • The loan has 10
Slide 40: Excluding Contingent Liabilities From DTI
Excluding Contingent Liabilities From DTI Page 29 of Matrix http://www.freddiemac.com/learn/pdfs/uw/docmatrix.pdf Advanced Loan Product Advisor 39
Slide 41: Total Monthly Debt
Total Monthly Debt https://sf.freddiemac.com/content/_assets/resources/pdf/fact-sheet/conv_lp_liabilities.pdf Advanced Loan Product Advisor 40
Slide 42: Property Type and PITIA
Property Type and PITIA ✓ Is Property type entered correctly (condo, PUD, manufactured home) ✓ Are the HOA dues, flood insurance or MI payments included in the housing payment, if applicable? Do you have written support? ✓ Does the occupancy make sense? Borrower Section Lender Loan Info Advanced Loa
Slide 43: Refinance
Refinance Paying off a second mortgage? ✓ Verify it was used to purchase the property or treat the loan as a cash out. ✓ Verify seasoning requirements for ownership and taking cash out. ✓ Is the property currently offered for sale or has it been offered for sale in the past six months? ✓ For refinan
Slide 44: Property and Appraisal
Property and Appraisal See temporary COVID 19 guidelines for appraisal flexibilities Advanced Loan Product Advisor 43
Slide 45: Home Possible Quick Facts
Home Possible Quick Facts Simple income eligibility – Low Income where median income at or below 80% of the AMI • No income limit – Low Income property locations • 100% of area median income – Easy to Use Income Eligibility Tool • Home Possible Income and Property Eligibility Tool Advanced Loan Prod
Slide 46: Freddie Mac Credit Fees in Price
Freddie Mac Credit Fees in Price https://guide.freddiemac.com/ci/okcsFattach/get/1001717_5 Advanced Loan Product Advisor 45
Slide 47: Mortgage Insurance Requirements
Mortgage Insurance Requirements Advanced Loan Product Advisor 46
Slide 48: The Checklist - Use It!
The Checklist - Use It! Advanced Loan Product Advisor 47
Slide 49: Read ALL Messages and Validate; Resubmit if Necessary
Read ALL Messages and Validate; Resubmit if Necessary Advanced Loan Product Advisor 48
Slide 50: FAQ's
FAQ’s https://sf.freddiemac.com/general/loan-product-advisor-faq#specification-v-5-0-06 Advanced Loan Product Advisor 49
Slide 51: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines
Slide 52: Genworth Rate Express
Genworth Rate Express® &, 800 444.5664 a|Q Genwort a, Mortgage Insurance : UNDERWRITING & GUIDES | LOS & CONNECTIONS | GENWORTH TOOLKIT | TRAINING OUR BLOG | ABOUT US Rate Express ITIONS THAT MATTER Genworth Mortgage Insurance Rate Cards GenRATE ga YOU year! Master Policy Quote Sweepstakes Resources
Slide 53: LOS Connections
LOS Connections &, 800 444.5664 a|Q Genwort a, Mortgage Insurance MI & RATES | UNDERWRITING & GUIDES LOS & CONNECTIONS | GENWORTH TOOLKIT TRAINING YOU-CENTRIC SOLUTIONS THAT MAT submit on Our Site LOS Connections PPE Quotes & Doc Delivery Application Forms _ Rate Quote Sweepstakes We're celebrating
Slide 54: Training Tools and Information
Training Tools and Information
Slide 55: Training Tools and Information
Training Tools and Information 54
Slide 56: Additional MI Site Information
Additional MI Site Information
Slide 57: Your Genworth Resources
Your Genworth Resources ➢ ActionCenter®: 800 444.5664 ➢ Your Local Genworth Regional Underwriter ➢ Your Genworth Sales Representative
Slide 58: Legal Disclaimer
Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials. While we strive for accuracy, we also know that any discussion of laws and their application to particular facts is subject to individual interpretation, change, and other uncertainties. Our train
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